FTC to Amazon: Friction Isn’t Free
Amazon is shelling out $2.5 billion to settle with the FTC after regulators accused the company of making it too easy to sign up for Prime and far too hard to cancel. The case centered on what the agency called “dark patterns” in its interface, design tricks that confused, delayed, or outright discouraged users from ending their subscription.
The payout includes $1 billion in penalties and $1.5 billion in consumer refunds, the largest consumer protection settlement in FTC history. And it all happened fast. The trial had barely started before a judge ruled Amazon broke the law, forcing the company to settle within three days. Internal documents showed teams raised red flags about cancellation friction as early as 2021, but executives repeatedly blocked fixes.
Why it matters
Prime is Amazon’s golden ticket. The longer someone stays subscribed, the more they default to Amazon for shopping, streaming, pharmacy, and beyond. Regulators now see retention tactics not as clever UX, but as a potential consumer harm. That means the way companies design checkout flows, subscriptions, and loyalty programs could soon carry legal risks.
For sellers
- Expect more scrutiny on customer journeys across the digital economy, from Prime memberships to Subscribe & Save.
- Compliance will extend to design. UX teams and lawyers will need to collaborate on retention strategies.
- This case sets precedent: behavioral nudges are no longer just design choices, they are regulatory concerns.
Amazon may have dodged executive testimony, but it confirmed the new reality. In the eyes of regulators, friction has a price tag.
Substory: How Prime Subscribers Can Claim Refunds
Out of the $2.5 billion settlement, $1.5 billion will go directly back to consumers, capped at $51 per subscriber. Refunds will roll out in two phases:
Wave 1: Automatic refunds
- Covers customers who signed up through a “challenged enrollment flow” such as the Universal Prime Decision Page, Single Page Checkout, or Prime Video enrollment screens.
- Applies only if the subscriber used fewer than three Prime benefits.
- Refund equals the full membership fees paid during the period, up to $51.
- No action needed. Amazon will pay automatically within 90 days.
Wave 2: Claims-based refunds
- Covers subscribers who either signed up through those challenged flows or unsuccessfully tried to cancel between June 23, 2019 and June 23, 2025.
- Applies only if the subscriber used fewer than 10 Prime benefits in any 12-month window.
- Consumers will receive a claims form from Amazon after automatic refunds are distributed.
- Customers can submit claims by email, prepaid mail, or the settlement website within 180 days. Amazon then has 30 days to decide.
- Valid claims will be paid up to $51.
Process changes Amazon agreed to
- A clear “Decline Prime” button instead of vague wording like “No, I don’t want Free Shipping.”
- Transparent disclosures on cost, billing dates, and frequency of charges.
- A cancellation flow that mirrors the simplicity of sign-up.
- An independent supervisor to monitor compliance.
Amazon says many of these changes were already in place, but the settlement formalizes them under court oversight.
ChatGPT Becomes a Top Traffic Driver for Walmart While Amazon Sits Out
ChatGPT is quietly reshaping how people shop online. In August, one in five of Walmart’s referral clicks came from ChatGPT, according to Similarweb data. That’s a 15% jump from July and puts AI ahead of some paid channels as a source of traffic. Etsy (20%), Target (15%), and eBay (10%) are seeing similar lifts.
It’s still early days. Referral traffic from ChatGPT makes up less than 5% of total visits for these retailers, dwarfed by search, ads, and direct traffic. But the speed of growth shows how quickly AI is working its way into the shopping funnel. Around 2% of all ChatGPT queries are now shopping-related—roughly 50 million a day. Questions like “What’s the best laptop under $1,000” or “How much are Nikes” are pulling shoppers straight into retailer links without a Google search in between.
Amazon’s Different Playbook
While Walmart and others welcome the clicks, Amazon has blocked most AI crawlers from its site. As a result, ChatGPT referrals to Amazon fell nearly 18% last month, now below 3% of traffic. For Amazon, the move is defensive: opening up its marketplace to third-party bots risks cutting out its $56 billion ad business. Instead, Amazon is betting on Rufus, its in-house shopping assistant that now answers questions directly inside the Amazon app.
That strategy keeps shoppers on Amazon’s turf, but it also pulls roughly 600 million product listings out of the “AI shopping shelf.” Walmart’s 420 million SKUs now show up more often in AI chat results, giving it unexpected visibility against the giant.
Monetization Coming Soon
Right now, retailers are enjoying a surge of free traffic. But it won’t stay that way. OpenAI is already testing checkout inside ChatGPT, and referral clicks are likely to turn into paid placements or affiliate-style fees. Agencies are springing up to help brands measure and optimize AI traffic, claiming sevenfold increases for early adopters.
What this means for sellers
- AI is becoming a discovery engine. Shoppers are asking bots for product advice the way they used to Google. If your products aren’t showing up, you risk invisibility.
- Amazon sellers may be shielded (for now). With Amazon blocking AI crawlers, brands on the marketplace won’t benefit from this new channel, but they also won’t face new layers of competition yet.
- Expect a paid layer. Today’s free clicks will likely evolve into an ad product or affiliate model, and retailers will pass that cost downstream.
We’re at the very beginning of AI-driven commerce. Whether or not fully autonomous “agentic shopping” takes off, the early impact, shoppers clicking from AI chat straight into retailer carts, is already disrupting old habits.
Amazon Wants to Fulfill Walmart Orders Too
Amazon just made a bold move in logistics. Its Multi-Channel Fulfillment (MCF) service, which already powers orders for eBay, Etsy, Temu, and TikTok Shop, will now support sellers on SHEIN, Shopify, and Walmart.
By pooling inventory with Fulfillment by Amazon, MCF lets brands use one stock source to serve multiple platforms. That means no need for separate warehouses or redundant systems, cutting costs and speeding up fulfillment.
What’s new
- SHEIN: A dedicated MCF app will roll out by year-end, letting SHEIN sellers tap into Amazon’s delivery network directly from Seller Central and the SHEIN Seller Hub.
- Shopify: Merchants can now choose Amazon MCF inside Shopify Fulfillment Network, syncing inventory, orders, and delivery tracking in real time.
- Walmart: Sellers can route Walmart Marketplace orders through Amazon’s network, giving them Prime-style speed on a rival platform.
Why it matters for sellers
Amazon is not only competing with other marketplaces, it is embedding itself into their fulfillment systems. For small and mid-sized brands, this offers faster delivery without extra infrastructure. For Amazon, it means keeping its logistics network indispensable even when sales happen off-platform.
The takeaway: whether you sell on Walmart, Shopify, SHEIN, or elsewhere, Amazon wants to be your warehouse.
Amazon Offers Fee Discounts on Bulk Business Orders
Amazon is cutting fulfillment costs for sellers who target business buyers. As of September 24, sellers using Fulfillment by Amazon (FBA) can qualify for new per-unit fee discounts when they set Amazon Business prices or quantity discounts of at least 3% off the standard price.
How it works
- Discounts apply only to Amazon Business orders, not consumer orders.
- Eligible size tiers are small standard and large standard. Large bulky and extra-large products do not qualify.
- The bigger the order, the bigger the discount. For example, a small standard unit under 6 oz saves $0.39 per unit at 2–4 units, climbing to $0.70 per unit at 25+.
Why it matters for sellers
Amazon Business reaches more than 8 million B2B customers who typically order in larger volumes with lower return rates. This program rewards sellers who make bulk purchases attractive through competitive business pricing.
Seller takeaways
- Set business pricing or quantity discounts of 3% or more to unlock fee savings.
- Review the fee table to understand the per-unit savings for your product tier.
- Use the Reports > Payments > Transaction view in Seller Central to see discounts applied.
The bottom line: if you want to grow B2B sales on Amazon, offering a slight discount can now pay twice, once in more orders, and again in lower FBA fees.
Amazon Lets You See Who Owns Product Images
Amazon has rolled out a new Image Manager feature that gives sellers transparency into where product images on a detail page are coming from.
Until now, if multiple sellers listed the same ASIN, it was tough to tell whose images Amazon chose to display. With Image Manager, you can now see whether an image is live and whether it came from your own account, one of your partner vendors, or another selling partner entirely.
How it works
- Images on product detail pages will be labeled as Live or Not Live.
- Hovering over the info icon shows the source of the image, including account number and merchant token.
- Sellers can finally confirm if the images they uploaded are what customers actually see.
Why it matters for sellers
Image disputes are a common frustration, especially in crowded categories. This tool brings clarity and gives sellers a way to manage brand presentation across accounts. You can now quickly identify whether your image is being used, or if another seller’s upload has taken priority.
Seller takeaway
Use Image Manager to audit your catalog, verify which assets are live, and adjust your upload strategy. With images being one of the top drivers of conversion, knowing exactly what the customer sees is no longer a guessing game.
eBay Buys Tise to Grow Its Fashion Resale Footprint
eBay is doubling down on resale. The company announced it will acquire Tise, a social marketplace for secondhand fashion and lifestyle goods based in Oslo, Norway. Terms weren’t disclosed, though reports value Tise at around $130 million.
Why it matters
Tise has built a loyal base of more than 2.5 million young users across the Nordic region, known for its social-first approach to resale. For eBay, the deal strengthens its consumer-to-consumer business in Europe and deepens its ties to younger shoppers who increasingly prefer secondhand fashion.
What eBay is saying
Executives described the deal as “a natural next step” in expanding eBay’s C2C strategy. Tise leadership said the acquisition will help scale its sustainability-driven model and bring resale to a wider audience.
Seller takeaway
eBay continues to invest heavily in resale and collectibles, positioning itself as a platform for community-driven commerce. If you’re a brand or seller in the fashion space, expect eBay to sharpen its resale edge to compete with Depop, Poshmark, and Vinted.
Kroger Bets Big on AI to Speed Fulfillment and Personalize Shopping
Kroger is leaning hard into artificial intelligence as a growth lever, with executives highlighting it as a core part of the grocer’s strategy. Interim CEO Ronald Sargent said AI is helping Kroger modernize operations, cut shrink, improve pricing, and accelerate fulfillment, including two-hour pickup windows.
Where AI is showing up
- Fulfillment: Kroger has eight AI-powered robotic fulfillment centers with Ocado and plans to expand. The tech improves efficiency in high-density areas.
- Online marketplace: Since launching its third-party marketplace in 2020, Kroger has leaned on AI to manage data, optimize assortment, and personalize recommendations.
- Data science: Executives pointed to AI’s role in better forecasting and employee support, helping stores balance costs with customer experience.
Why it matters
Kroger is one of the largest grocery players in the U.S., and its push into AI signals how central automation and personalization will become to the grocery model. For brands, this means tighter supply chains, smarter ad placements, and more pressure to adapt to AI-driven retail environments.
The takeaway: AI is no longer a side experiment in grocery. For Kroger, it is the operating system for fulfillment, pricing, and customer engagement.
Turning Tariffs Into Cash With Duty Drawback
Tariffs usually eat into margins, but more brands are discovering that they don’t always have to. The U.S. duty drawback program allows importers to reclaim up to 99% of duties, taxes, and fees on imported goods that are later exported or destroyed.
Why it matters
With tariffs rising on Chinese imports and trade policy still uncertain, duty drawback can mean the difference between red ink and profit. Companies that export a portion of their products — or use imports in manufacturing for export, are leaving money on the table if they aren’t filing claims.
How it works
- Import a product and pay duties at the port.
- If that same product (or product made with it) is later exported, you can claim a refund.
- Refunds cover up to three years of prior imports, so retroactive claims can generate significant cash flow.
Seller takeaway
If you are importing and exporting, explore duty drawback as a financial lever. Filing requires documentation and sometimes a partner to manage compliance, but the payoff can be meaningful in tariff-heavy categories like consumer electronics, apparel, and industrial goods.
The bottom line: Tariffs are a cost of doing business, but duty drawback can turn them into a hidden revenue stream.
Microsoft Turns Copilot Into a Fashion Concierge
Microsoft is teaming up with Curated for You to make its Copilot AI a personal stylist. Shoppers can now type prompts like “What should I wear to a holiday party in NYC?” and get curated, shoppable looks from brands including Revolve, Steve Madden, Rent the Runway, and Lulus.
Why it matters
AI is moving past search into discovery. Instead of scrolling endless product grids, shoppers get trend-driven “visual stories” that resemble inspiration boards more than ads. Early data suggests these generate higher engagement and conversions.
The bigger picture
- Ralph Lauren recently added “Ask Ralph” to its app for AI-driven style advice.
- Target is redesigning infrastructure to support longer, conversational searches.
- Surveys show most consumers now prefer natural language shopping queries over keyword-heavy searches.
Seller takeaway
As conversational AI reshapes product discovery, brands need to ensure their catalog data, creative assets, and partnerships can plug into these new channels. The future of shopping is not typing SKU codes, it is asking questions the way we talk.
Walmart Kicks Off Holiday Deals Early With “Delivered” Event
Walmart is getting a head start on holiday shopping. From October 7–12, the retailer will launch “Walmart Deals, Delivered,” offering up to 50% off tens of thousands of items across toys, fashion, electronics, home, décor, and more.
What’s new
- No membership required — all shoppers get access.
- Walmart+ members receive a 5-hour early window on October 6.
- Convenience is the hook: same-day delivery, 6 a.m. early morning drop-offs, and Express Delivery in as little as 30 minutes.
Why it matters
October has become the unofficial kickoff to holiday shopping, and Walmart wants to own the moment before Prime Day and Target Deals Week hit. By making the event open to everyone, Walmart is positioning itself as the most accessible starting point for seasonal savings.
Seller takeaway
This signals another shift in the holiday calendar, with major retailers now battling to lock in budgets earlier than ever. Brands should be prepared with promotional pricing, inventory flexibility, and ads ready to capture early traffic.
The bottom line: Walmart is betting that convenience plus aggressive early pricing will pull shoppers in before they even start browsing Amazon.
Halloween Spending Hits $13.1B as Shoppers Start Earlier Than Ever
Halloween 2025 is shaping up to be the biggest on record. Consumers are expected to spend $13.1 billion this year, according to NRF, with nearly half of shoppers (49%) starting before October.
What’s driving the early rush
- Candy is king: 96% of shoppers will buy sweets.
- Decor is booming: 78% plan to purchase decorations, up from 75% last year.
- Costumes are climbing: 71% say they’ll dress up, compared with 67% in 2024.
- Greeting cards are seeing surprising growth, with 38% of consumers buying them, up from 33%.
Consumers say they’re shopping early to avoid last-minute stress, lock in the best costumes, and stretch budgets. Gen Z leads the way: more than half of 18–24-year-olds start early simply because they love fall.
Costume watch: what’s trending in 2025
- Kids: Spider-Man keeps the crown, followed by princesses, witches, ghosts, and a wave of Wednesday Addams fans.
- Adults: The witch remains the top pick, but vampires, pirates, and Batman also make the list. K-pop Demon Hunters broke into the top ten for the first time.
- Pets: Pumpkins are still No. 1, with hot dogs, bumblebees, and bats rounding out the pet parade.
Why it matters for sellers
Halloween has evolved into a two-month retail season. Missing the September window means missing nearly half of sales. With candy, décor, and costumes driving the bulk of spending, sellers should prioritize themed bundles, early ad campaigns, and high-velocity inventory in these categories.
The takeaway: Halloween is no longer just a holiday. It’s a cultural event that starts in September and ends with a $13 billion price tag. The brands that plan early will get the treat — everyone else gets the trick.
Walmart’s Pro Seller Badge Gives Sellers a Competitive Edge
Walmart is rewarding top performers on its marketplace with a new tiered Pro Seller Program. Sellers who meet strict performance metrics can unlock perks ranging from faster payouts to referral fee discounts, with the ultimate prize being a Pro Seller Badge that boosts visibility on eligible listings.
How it works
- Rising Seller: Faster payouts and discounts on shipping labels.
- Advanced Seller: Adds up to 10% faster payouts, 25% shipping label discounts, access to Walmart Capital, Review Accelerator credits, and a 5% referral fee discount on Pro Listings.
- Pro Seller: Unlocks the coveted badge on all eligible listings, plus a 10% referral fee discount, faster payouts, and extra perks like Review Accelerator credits.
Eligibility criteria
- On-time delivery rate: 95% or higher.
- Cancellation rate: 1.5% or lower.
- Responsiveness rate: 95% or higher.
- Content and pricing competitiveness scores at or above 75% and 60% respectively.
- At least 100 orders and 90 days of activity.
Why it matters for sellers
The Pro Seller Badge signals reliability to shoppers and can increase conversion rates by making listings stand out. The additional fee discounts and faster payouts also put real dollars back into sellers’ pockets. Walmart is making it clear: sellers who prioritize fulfillment, pricing, and customer experience will rise to the top of search results.
The takeaway: hitting Pro Seller status is both a marketing edge and a financial incentive, turning operational excellence into a growth engine on Walmart’s marketplace.
Walmart Slashes Referral Fees on Toys and Pet Supplies
Walmart is giving sellers a holiday boost with its Seasonal Favorites program, offering major referral fee discounts through January 31, 2026.
The perks
- Toys: 100% off referral fees when priced competitively, shipped within three days (or via WFS), and supported with Walmart Connect ads.
- Pet Supplies: 50% off referral fees under the same requirements.
- Customer Favorites: Up to 100% off referral fees for new or optimized items, depending on fulfillment speed.
What it takes
- Competitive pricing that meets or beats the Buy Box.
- Reliable shipping — three days or less, with the biggest discounts tied to two-day fulfillment.
- Advertising support, with Walmart requiring at least 4% of category GMV invested into Sponsored Search or Brand Shops.
Why it matters for sellers
Referral fees are one of the biggest costs of selling on marketplaces. Cutting them in half, or eliminating them entirely, gives sellers room to offer sharper pricing and still hold margin. Walmart is signaling that speed, price, and discoverability will win the holiday season.
The takeaway: if you sell toys or pet supplies, now is the time to push inventory onto Walmart and back it with ads. Referral fee savings this steep are rare.
Keep up with the latest Amazon and Walmart news updates and subscribe to our BellaVix newsletter 👇👇👇
Stop scrolling. Start knowing.
Take a screen break and tune into the latest episode of Selling on Giants: Weekly eCommerce News & Updates.
This week: FTC Hits Amazon With $2.5B Settlement, Walmart Wins on AI Traffic, and Holiday Deals Start Early.
Stay informed and ahead of the curve in only 15 minutes.
🎧 Now streaming on Buzzsprout and YouTube